12 Ways to retain your Best People this year

Staff retention remains one of the bigger challenges I see in business.

Business owners complain to me “If only I’d known something before they resigned, I could have kept them”. 

But of course it’s generally too late after they resign.

So what can you do to retain your best people longer? 

1.    Tell them what you want

One of the biggest compliments I hear employees say about their employer is that they were told what the owner wanted.

Periodically explain what you want your business to achieve over the next month, quarter, year and medium-term. In my bookThe Fourth Moon I call these Mission Goals.

Explain to teams what you want them to achieve.

And most importantly, explain to each team member individually what you want them to achieve. In my book The Fourth Moon I call these Crew Goals.

Ensure every team member understands the Top 5 Goals for the business, their team and themselves.

2.    Create a career path

Don’t just focus on the immediate role required.

Look at how that role can evolve over the next two years and 3-5 years.

Then step out what the hire will need to learn and deliver on. What are the performance gaps and learning needs that they can overcome to grow within the business?

Wherever possible, develop a short-term and medium-term career path for each position.

Don’t be scared to discuss this career path as early as the hiring stage. The candidate is thinking about where this role will take them.

If you are able to map this out for them, and the evolution of their role is realistic and attractive, you will have dramatically increased your chance of securing the best candidate.

3.    Make their role more interesting and meaningful

Two questions to challenge yourself on each team member.

How can I make a team member’s role more interesting? Can I introduce some new functions? Can I delegate or outsource some mundane tasks? Can I improve the comfort and functionality in their work environment?

How can I make a team member’s role more meaningful? Can I explain how the successful completion of their tasks leads to the achievement of a business or team goal? 

4.    Check in

Check in regularly and proactively with each team member.

Rolling operational check-ins should be mandatory with the frequency of these check-ins based on seniority and job complexity.

Regular performance reviews should be scheduled in advance and conducted on a non-negotiable basis. 

5.    Let them take risks

Start allowing your team members to take small risks. As they succeed, increase the stakes.

A team member may suggest outsourcing some activities offshore. Consider trialing this for a month to see if the same work quality is achieved at a lower cost.

Be open to ‘changing things up’ on a trial basis. Consider allowing a team member to work remotely a day a month. If it is successful, you might increase this to a day a week.

6.    Celebrate their wins

To criticize is easy. But to praise takes character.

Acknowledge team member wins in many forums. 

Praise them individually. Tell their Manager and mention wins in front of their team. Praise them in front of customers and advisors.

Don’t be scared to say two of the rarest words in business.

Thank You.

7.    Invest in them individually

In the global online village, there are endless ways to invest in professional and personal development of your team. This is only limited by your imagination.

On the job training, internal training, external training, online training, education, coaching and mentoring. 

Be generous.

8.    Fertilize your culture

List how you can make your business amazing in ways that your team members will brag to their friends and family about you?

Then do it.

9.    Remunerate generously

Salaries and standard benefits should be above market if you really want to remove the ‘pay’ issue as a retention risk.

Special benefits such as child care, extra annual leave and gym memberships go even further.

10.    Incentivize

Periodic incentives based on achieving goals or targets are a powerful tool in retaining talent.

These can include bonuses, gifts, prizes, travel, experiences or staff events that contribute to sticky retention.

11.    Random acts of kindness

These are spontaneous or event-driven acts of kindness to acknowledge individuals who have had a milestone event (marriage, baby or personal achievement) or gone the extra mile for the business.

12.    Care

You can’t fake care.

Take a genuine interest in your team members. From the heart.

And if you do make a management mistake, say the other rare word in business.

Sorry.

I’d love to hear your comments on your most innovative retention strategies to keep your best people.

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I really want you to start creating sustainable success in your business and life. Simply check out my FAQs videos HERE on what business owners most commonly ask about sustainable business success. If they help you, simply sign up and get the other 20x videos free.

Claim your Giveaways now, find out what the Fourth Moon is and reach your goals sooner!

Cheers, Darren K Bourke

How to attract talent in a competitive market

The eternal challenge of attracting talent often seems elusive.

That talented candidate you just interviewed will receive multiple job offers.

How do you influence their decision to accept your offer? 

Stand Out

Don’t even try and attract the best talent if you don’t stand out in any way in your market.

Are you the oldest business? Or the best? Do you have a compelling story? Or unique products or services? Are you the most innovative? Or maybe have the best customers? Perhaps your culture is best in class. Is your office the coolest in the best location?

If you can’t differentiate yourself in some way to stand out from the crowd, why would you attract the cream?

If you have an ‘ah ha’ moment in realizing you don’t stand out in any way, it’s never too late.

Commit to brainstorming ways in which you can stand out and create a point of difference.

Then tell the next gun candidate at interview.

Fish in several ponds

You wouldn’t fish in the exact spot on the same river day after day if you never caught a prize fish.

Adopt an approach that sees you fishing in several ponds in attracting talent. 

Of course you can fish for candidates through traditional job advertising. But complement it with a battery of other fishing lines including listing on your website, emailing your network requesting candidates of interest, social media shout outs, external agencies on a success fee only arrangement and employee introductions with a finder’s fee paid.

Sell the sausage and the sizzle

The sausage is what you sell. Craft and practice your perfect pitch. Then pitch what you sell passionately and clearly to every candidate. 

The sizzle is what you do so well that makes you great. 

Back up the sausage and the sizzle through providing resources to candidates that demonstrate your great work, reputation and market presence. 

Clarity & transparency

Start by explaining the process and timeline. Explain what you will be doing and what they will need to do in the process. Provide a timeline for the process from start to finish.

It’s amazing how many businesses I meet that are unable to define a role they are hiring for. Think about it from the candidate’s position. Would you accept a role that is unclear? So take the time to document the key priorities and a tight position description for the role. Refer to this in the interview.

Be prepared for questions in advance and answer them comprehensively and honestly. Allow enough time for the candidate to ask questions and don’t rush them.

Involve a star-studded line up during the interview process

Present a dynamic and diverse group of people to the candidate throughout the interview process whenever possible.

Internally, in addition to a direct report, be open to including peers in the latter interviews to connect with the candidate and assess fit.  

Externally, be open to a trusted advisor/mentor conducting an informal phone call late in the process with the candidate, to provide an independent opinion.

Candidates observe this, and in my experience, this only enhances their opinion of you as a potential employer.

Move quickly

First to move often wins.

It is an overlooked advantage. But often the first employer to make an offer wins the day.

Find the right balance between a rigorous recruitment process and timely execution of offer.

If your instincts are screaming at you to make a hiring decision, fast track the process and make an offer now. 

I’d love to hear about your innovative ideas around attracting talent to your business.  

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I really want you to start creating sustainable success in your business and life. Simply check out my FAQs videos HERE on what business owners most commonly ask about sustainable business success. If they help you, simply sign up and get the other 20x videos free.

Claim your Giveaways now, find out what the Fourth Moon is and reach your goals sooner!

Cheers, Darren K Bourke

How to Focus in a Noisy World

Have you noticed how noisy it is around you?

I’ll speak a bit louder. Can you hear me now?

Now I’ve got your attention, I want you to reflect on whether you have a clear focus on your most important work.

Getting your most important projects completed has to be a key priority.

You have to block out the noise. 

If you don’t control the noise, it will control you.

Email

Do you love watching emails cascade into your inbox and reading them instantly?

Or do you have an audio ‘ping’ announcing each email’s arrival?

Well stop it.

Turn off email and only open it to check between blocks of focused work. If you want to, treat it as a reward for a solid block of 60-90 minutes of uninterrupted focus.

Another winning tactic is to set an autoresponder email that advises people you’ll only be checking your email mid-morning, after lunch and late-afternoon.

Then simply schedule 15 minute blocks in those three windows to check and respond.

But don’t cheat.

Internet

Do you love getting lost surfing the web? Does click bait turn you on?

Endless hours are lost each week to this.

So stop it.

Turn off your browser and only use internet for focused tasks related to your activity.

If this is particularly hard for you, schedule times at lunch or after hours to satisfy your web addiction.

But don’t rob your most important work by entering this vortex. It is a thief of time and productivity.

Social Media

Social media can be the Achilles heel to focus. There is endless content being spewed out on so many channels.

Of course I agree social media has a place. I use it.

Posting content on social media is best when connected to your focused activity.

A blog link, a helpful resource or insightful comment on twitter is okay when linked in context.

Just manage your access.

Set up a social media calendar with activity scheduled strategically on given days.

If you are a social media junky, allocate unrestricted access outside of windows of time dedicated to your most important work.

Next time you think that twitter post is so important, make the post and then open the stopwatch on your iphone. Hit refresh on twitter and time the number of seconds it takes your post to be buried down the line. 

Mobile Devices

Turn off notifications, beeps and vibrations on all mobile devices that interrupt focus.

As the saying goes – Silence is golden.

Internal Meetings

Those of you that know me, know I bang on about how critical internal meetings are.

However, they must have a standard agenda, run times, rules, a Chair to facilitate, a Scribe to note agreed actions and follow up actions distributed.

A regime of recurring meetings should be non-negotiable and inserted in all attendees’ diaries.

Beyond these non-negotiable internal meetings, there should be ample capacity for focused activity.

Open-Plan offices

I never understood the US-led popularization of open-plan offices with the CEO sitting within the team.

How can they be expected to function optimally as CEO?

No clarity to think. No confidentiality. How can they focus on their critical work as leader and have private conversations or review confidential documents?

If you don’t have an office, try and create a sacred space for focused activity. Perhaps a meeting room. Or the Boardroom. Your home study. Or hold walking-meetings like Steve Jobs famously did in the park. Even a quiet café or park bench.

Escape the noise and create a mindset and an environment where focused activity is paramount.

How else can you create your best work with the constant noise and distraction of our crazy world?

Commit to the discipline of eliminating the noise. Change things up.

The world needs your most important work. And it’s your job to deliver it before leaving the planet.

If you want to talk about focus and working on your most important projects, please email me at darren@darrenkbourke.com 

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I really want you to start creating sustainable success in your business and life. Simply check out my FAQs videos HERE on what business owners most commonly ask about sustainable business success. If they help you, simply sign up and get the other 20x videos free.

Claim your Giveaways now, find out what the Fourth Moon is and reach your goals sooner!

Cheers, Darren K Bourke

Employees or Contractors - The Dilemma of Hiring Talent

When you need a resource in your business, how do you tackle it?

Is your default response always to hire employees, only to regret it later when it doesn’t work out?

Or are you innovative and look at your resourcing need holistically, considering engaging contractors as a potential solution?

Business owners struggle with this dilemma.

So here’s some tips to consider.

I preface this blog article in saying that you should understand the definition of an ‘employee’ under the applicable legislation. So please check that ‘contractors’ are in fact contractors and not ‘deemed employees’ under law. 

Reasons to hire Employees

There is a permanent or ongoing need, full-time or part-time, for the resource. 

Hiring an employee fixes operational costs through fixed salaries.

Hiring talented employees with operational skills may reduce business risk in the ability to deliver your service offering. Business continuity is important.

Employees can reduce the burden on owners in running the business.

Attracting and retaining talent through employment can be a competitive advantage and create barriers to entry for other competitors.

Reasons you may prefer not to hire Employees

Getting stuck with a resource you may not need in the business on an ongoing basis.

Getting stuck with a particular individual you may not wish to retain in employment.

The annual cost of a full-time resource may be prohibitive for cash flow reasons.

Employment on-costs such as superannuation and insurances.

Administration increases for payroll processing, employment records, taxation and other record keeping.

Employees are paid when they are sick and on holidays.

Fear of unfair dismissal claims or industrial relation disputes if you wish to terminate employees.

Fear of personal conflict if in dispute with an incumbent employee

So what are some of the benefits to engaging Contractors?

Contractor costs for a resource can often be reduced through tendering and negotiation between several parties seeking engagement.

Engaging a resource on a ’success only’ basis can result in you only paying if they meet the deliverable.

Contractors can be terminated when the business doesn’t need the resource. There is less personal conflict and no fear of an employment law dispute.

Engaging a more experienced resource through appointing a contractor for less hours at a higher rate. In this scenario, the annualized cost for the resource is generally still cheaper than paying a full-time employee over a year.

Contractors often work off-site and reduce operational expenses in not impacting administration expenses or rent. Contractors are not normally subject to employment on-costs.

You do not pay contractors when they are sick or on holidays.

Cash flow may be smoother through negotiating payment terms with as contractor.

What types of roles suit Contractors?

In the global village of the internet, there are endless ways to engage contractors to meet a resource need.

Business owners are getting savvier about resourcing.

And don’t just think that all contractors engaged are sourced off-shore via the internet. There are many local domestic contractors providing resourcing solutions to business owners, eliminating the need for them to hire employees.  

With so many exciting, innovative and cost-effective resources available, it is worth observing which ones are working best for business owners?

The areas that I am seeing more contractors being appointed by small and medium businesses include:

•    Bookkeeper
•    Finance Manager/Virtual CFO
•    Personal Assistant/Virtual assistant
•    Graphic Design
•    Accounting/Legal
•    Website Support
•    IT Support
•    Administration
•    Data Processing
•    Online Sales
•    Sales & Marketing
•    Social Media & Communications

Finding the right balance

There is a happy medium in complementing your employee team with contractors.
Getting this right is part art and part science.

I encourage you to be curious and innovative in finding solutions to your resourcing needs.

There is no one way

Play with this and make it work for you.

Creating synergies in resourcing through both employees and contractors is the future.
If you want to learn about how I can help your business with resourcing or other business challenges you’re facing, please email me.

You might like to also come to our Roadshow on Thursday this week, as it will give you some further insight on the article above. If you would like to come along please find further details here.

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I really want you to start creating sustainable success in your business and life. Simply check out my FAQs videos HERE on what business owners most commonly ask about sustainable business success. If they help you, simply sign up and get the other 20x videos free.

Claim your Giveaways now, find out what the Fourth Moon is and reach your goals sooner!

Cheers, Darren K Bourke

The Secret to getting Profits out of your Business - The Takeout Policy

One of the greatest opportunities missed is business owners not getting their profits out of the business. 

All the hard work in starting your business and developing an attractive offering that meets the needs of your target market amounts to nothing if you don’t withdraw profits.

The solution to this, and one of the great wealth secrets of the successful, is The Takeout Policy.

Lazy Money

Having excess cashflow rolling around in your business operating accounts is akin to ‘lazy money’.

I’m not talking about marginal businesses that float within $100 of their loan limits day to day. Or businesses that re-invest their profits for growth. Or start-ups focused on fast scale and exit.

The relevance of the Takeout Policy applies to the many established businesses that are producing solid and consistent operating profits. 

Shouldn’t I leave my money in the business?

It depends.

Yes if you are a start-up and need early profits to survive, grow rapidly and exit. Yes if you are rapidly expanding your business, adding new divisions or entering new markets. Yes if you acquiring businesses or intend to start new ones. 

No if you are like most small and medium businesses. You are established, drawing a market salary, have a static staff level, a stable customer base and a satisfactory ‘cash float’ for working capital. You are profitable.

Businesses in this second group I encourage to adopt The Takeout Policy.

How does The Takeout Policy work?

The Takeout Policy explained: 

1.    Leave a sufficient ‘float’ in the business for working capital
2.    Put aside a sufficient tax provision (based on your tax rate applicable to earnings)
3.    Only apply the Takeout Policy to a profitable period of trading (quarter or half-year)
4.    Should you incur a trading loss in a period, that trading loss must be recouped next period before future Takeout can be withdrawn
5.    Withdraw trading profits (after tax provision) in arrears after you have collected from your customers  
6.    Invest in capital appreciating assets 

What about cashflow?    

Leaving a ‘float’ in the business provides working capital with sufficient funds to pay your wages, trade creditors and general operating overhead.

This is critical to your peace-of-mind in knowing that there is enough money in the business to pay the bills.

It also provides confidence to transfer profits out of the business safely and systematically. 

Cashflow is supported by the timing of The Takeout Policy. Takeout is in arrears. That is, profits are taken out 90 or 180 days after the trading period when you have collected debtor monies from your customers. 

The Takeout Policy acknowledges the need to convert debtors to ‘cash at bank’.

Is it risky?

If you strictly follow the rules of The Takeout Policy, it is not risky.

If you make a loss for the period, there is no Takeout Policy for that period.

Losses from a previous period must be recouped in the next period before any future Takeout applies.

Takeout should be invested in capital appreciating assets.

Worst case scenario, should you have a major setback in the future – you sell some assets. These assets in most cases will have appreciated over time. As a result, you will most likely be in front having invested in assets over time, rather than having cash rolling around in your bank accounts. 

How do I get started with this?

Review your working capital requirements in conjunction with the risk profile of you and your business partners.

Assess the ‘cash reserve’ you want to leave in the business to cover working capital needs. 
This might be a month’s wages. Or a month’s trade creditors. It could be a month’s total payments.

Whatever the amount, quarantine this reserve before commencing The Takeout Policy. 

If this reserve needs to be saved for, delay the commencement of The Takeout Policy until this reserve is reached.

Once you have a sufficient cash reserve, set up The Takeout Policy for implementation.

Implementing The Takeout Policy  

Set the frequency of Takeout based on your business and any seasonality. If you carry debtor balances for a long period of time, or are subject to seasonality in your market, look at the timing of Takeout.

Typically, the best frequency I’ve found is either 90 days or 180 days in arrears. Quarterly or six-monthly seems to work best.

Ensure that you have accurate and timely financial reporting. If you are to withdraw profits, you want to make sure that your profits have been calculated accurately. 

I recommend setting up a separate interest bearing bank account for you to transfer the tax provision on profits. This will keep your Accountant happy and you will sleep well knowing your taxes are provided for. The tax bill will inevitably come, so there is no point pretending it won’t.

Set dates in your calendar for the transferring of tax provision and Takeout. Or schedule it to follow a Board or Management Meeting. This discipline ensures Takeout happens.

What can I expect over time from The Takeout Policy?

Applying The Takeout Policy on a systematic and disciplined basis over time will dramatically improve wealth creation.

Through investing in capital appreciating assets over a period of time, you benefit form ‘time in the market’. Time in the market is what allows your assets ‘time to appreciate’ in value.

The ability to invest in capital appreciating assets over several decades rather than ‘leaving profits in the business’ until selling the business or retirement is key.

If you wait until you sell the business or retire, you then have limited years for the capital assets to appreciate in value. 

The key to wealth creation is investing consistently over time in quality assets.

And finally. 

Have fun with this. Smell the roses in making those Takeout transfers. Getting profits out of the business is the final step (some may say the most important step) in recognizing and crystallizing the reward for all your effort.

Let me know if you are ready to make the commitment to The Takeout Policy in your business.

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I really want you to start creating sustainable success in your business and life. Simply check out my FAQs videos HERE on what business owners most commonly ask about sustainable business success. If they help you, simply sign up and get the other 20x videos free.

Claim your Giveaways now, find out what the Fourth Moon is and reach your goals sooner!

Cheers, Darren K Bourke

The symbiotic relationship between three levels of goals that creates powerful synergies for achieving your Business Strategy

Synergy is what happens when the right people do the right things.

I recommend you establish your Top 5 Goals as follows:

1. Top 5 Goals for Business (Owners/GM/MD accountability)
2. Top 5 Goals for Management Team/Key People individuals (Management Team accountability)
3. Top 5 Goals for individual employees (Crew Goals & accountability)

The key strategy here is to ensure that goals are influenced/linked within the three levels.

Get this right and let synergy go to work.

There is an alignment or synergy in the achievement of Top 5 Crew Goals by individual employees leading to the achievement of Top 5 Goals for the Management Team which ultimately leads to the achievement of the Top 5 Goals for the business.

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I really want you to start creating sustainable success in your business and life. Simply check out my FAQs videos HERE on what business owners most commonly ask about sustainable business success. If they help you, simply sign up and get the other 20x videos free.

Claim your Giveaways now, find out what the Fourth Moon is and reach your goals sooner!

Cheers, Darren K Bourke